An introduction to psychology in trading stock market

A big mistake that beginners make when first learning to trade stock, is to assume that developing technical or fundamental analysis skills alone will allow them to become successful. In fact, learning to control emotions is the most important skill that allow a trader to become successful, because emotions have the biggest impact on your results.

Successful trading is not down to any single trade, but a number of trades using a consistent strategy. This means that a trader must be disciplined enough to stick to their strategy, even throughout a losing streak. However, human beings often do not behave in a logical way and there are many times that emotions influence us and we act differently to normal.

Do you remember the last time you were very angry? Maybe you did something and you were surprised by your actions. As much as you regretted it afterwards, at the time you probably couldn’t help it and furthermore, you are likely to act the same way again if you become angry in the future.

This is because the psychology of a person is made up of thoughts and feelings that are an incitement to act, and so psychology shapes our behavior in every aspect of our lives – trading stocks is no exception.

Emotions are inevitable – especially for a new or unskilled trader and they can prevent you from making an objective decision. For this reason, learning how to control emotion becomes paramount to successful trading over and above everything else.

God created human mind and it changed the world dramatically, Financial work is no exception which gets affected by human psychology, Rather, for participants of the financial world, who are expected to be ”wealth maximizes”, psychological stability plays a vital role. Human minds place events into different mental compartments and hence each event has a different impact on our behaviors.

Trading in financial markets is among the most challenging endeavors. Successful trading involves the human minds’ ability to handle complex and difficult situations in financial world and to control one’s behavior to overcome the complexities involved in trading.

Success and rewards in financial trading are offered only to those who have mastered the art and science of trading and that is the biggest fascination that attracts human towards financial trading.

Trading is not just to understand markets but to develop a psychology of not making mistakes. For that, I am going to guide you with daily case studies, price action behavior, decision-making based on technical indicators etc. by developing skills that best suits handling difficult stress full situation in trading.

”A person who never made a mistake never tried anything new”
Albert Einstein